Neiman Marcus Forges Forward With Bankruptcy Filing

In addition to our normal news coverage, What Now Atlanta is tracking ways Atlanta’s businesses are adapting to the novel coronavirus and the challenges it brings to brick-and-mortars.

Neiman Marcus Group on Thursday announced it had moved forward with plans to file for bankruptcy protection during the COVID-19 outbreak, rendering the company the “first major department store group” to do, according to the New York Times.

Neiman Marcus Group filed for Chapter 11 restructuring in the U.S. Bankruptcy Court for the Southern District of Texas, according to a statement published Thursday by the company.

“Prior to COVID-19, Neiman Marcus Group was making solid progress on our journey to
long-term profitable, and sustainable growth,” Geoffroy van Raemdonck, the company’s chairman and CEO, said in a prepared statement.

“We have grown our unrivaled luxury customer base, expanded our industry-leading customer relationships, achieved higher omni-channel penetration, and made meaningful strides in our transformation to become the preeminent luxury customer platform. However, like most businesses today, we are facing unprecedented disruption caused by the COVID-19 pandemic, which has placed inexorable pressure on our business.”

Atlanta’s Lenox Square Neiman Marcus reopened on Monday, May 4, by private appointment only (see which other retailers of the Buckhead mall have also reopened by clicking here.)

Temporary closures of other Neiman Marcus, Bergdorf Goodman, and Last Call stores,
have been extended through May 31, 2020.

“My team and I appreciate the partnership and the steadfast support of all our stakeholders and Board of Directors through this process,” Geoffroy van Raemdonck said.

“The binding agreement from our creditors gives us additional liquidity to operate the business during the pandemic and the financial flexibility to accelerate our transformation. We will emerge a far stronger company. In a world that is changing, we are uniquely positioned to give our brand partners access to our loyal luxury customers like no other company. We will deliver that through the strength of our associate relationships and digital solutions.”

J. Crew earlier this week announced it had also filed for bankruptcy in response to the economic impact brought on by the coronavirus outbreak and other retailers are expected to follow suit.

[Editor’s note: The novel coronavirus (COVID-19) pandemic is rapidly evolving as is its effect on Atlanta, and the City’s businesses and its residents. Click here for What Now Atlanta’s ongoing coverage of the crisis. For guidance and updates on the pandemic, please visit the C.D.C. website.]